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Are you still waiting for the August payment for the child tax credit which, well, should have been there a week ago? Or are you wondering how you could change your mailing address for credit?
The Internal Revenue Service offered some additional responses on Friday.
As previously reported, confusion is creating delays for about 4 million or more people who will now receive checks for their August early child tax credit, instead of direct deposit like in July. Some checks may have arrived already, but others could arrive later this month.
I didn’t have the August money. Why?
The IRS sent me this statement on Friday to shed light on the problem, which was not detailed in previous statements. Why did this happen in the first place?
The IRS said Friday that a “process was missed, which resulted in a percentage of payments being issued in the form of paper checks instead of direct deposit.” The error apparently occurred as the IRS was preparing to issue the advance child tax credit for August.
The IRS was not more specific.
“The IRS apologizes for this inconvenience and has taken steps to ensure that future payments are issued using the correct delivery method (direct deposit or paper check),” according to an email from the IRS which was sent to me on Friday.
In some cases, IRS payments and refunds will be issued as a paper check as part of this confusion, even when the IRS has received updated information for direct deposit of the payment or refund.
Taxpayers can visit the Child Tax Credit Update portal at IRS.gov to see if they are receiving a direct deposit or a paper check this month.
The problem should be resolved in time for the September payments. Taxpayers in this group do not need to make any adjustments.
I moved. What do I do now?
The IRS also announced on Friday that it had launched a new feature that allows any family receiving the Advance Monthly Child Tax Credit to update their mailing address using the Credit Update Portal. Child Tax on IRS.gov.
The goal is to ensure that families who wish to receive payment by paper check can avoid mailing delays or even avoid the horrible experience of having a key check returned as undeliverable.
If you have direct deposit, you can also update the address for future IRS correspondence.
Going forward, the IRS will send a year-end summary statement, called letter 6419, to all taxpayers who received child tax credit advance payments in 2021.
IRS Letter 6419 is essential for registering your 2021 income tax return in order to itemize the amount you received in 2021. You would claim the remaining portion of the child tax credit on the 2021 income tax return.
When should I make a change?
Check the IRS portal before August 30 to make the necessary updates for the September payment, which is scheduled for September 15.
The IRS noted that families can still make changes after that date, but their request won’t be effective until the next scheduled monthly payment.
The portal can now also be used to switch from receiving a paper check to direct deposit; change the bank account into which your payment is deposited; and stop monthly payments for the remainder of 2021.
Future child tax credit advance payments are set for September 15, October 15, November 15 and December 15. The advance program does not apply until 2021.
Nikki Wells conducts a song before snack time on March 16, 2021, at Nikki’s Family Childcare and Preschool in Gnadenhutten, Ohio. A Child Tax Credit in the American Rescue Act has the potential to have a dramatic impact on children and child care providers in rural areas.
Contact Susan Tompor: [email protected]. Follow her on Twitter @tompor. To subscribe, go to freep.com/specialoffer. Learn more about the companies and subscribe to our business newsletter.
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